Total revenue grew 141% over the immediately previous quarter to $19.6
million

Operating income grew by 178% over the immediately previous quarter to
$5.4 million

Operating income was $0.05 per share on an after-tax basis versus $0.02
in the immediately previous quarter

Total assets increased by 10% over the immediately previous quarter to
$1.1 billion

Contractual delinquencies were less than 0.2% of total finance
receivables

TLS Fleet Management integration completed on schedule

TORONTO, Nov. 6, 2012 /CNW/ - Element Financial Corporation (TSX:EFN)
("Element" or "the Company"), Canada's leading independent equipment
finance company, today reported that record origination levels of
$219.7 million contributed to revenue of $19.6 million, operating
income of $5.4 million and operating income per share of $0.05 on an
after-tax basis for the three month period ending September 30, 2012.

Of the $219.7 million of new originations booked in the third quarter,
Element Finance contributed $86.7 million or 39.4%, Element Capital
contributed $82.1 million or 37.4% and Element Fleet contributed $50.9
million or 23.2% During the period, Element completed the integration
of the operations of TLS Fleet Management which the company acquired on
June 29, 2012 adding more than $460 million of lease assets to
Element's portfolio at the end of the previous quarter.

"With all three of Element's business verticals now contributing to
origination volumes, and the seasonally slowest period for our fleet
management business now behind us, these strong Q3 results offer a
first look at the new base line from which we expect to continue to
build Element's quality earnings growth," said Steven Hudson, Element's
Chairman and CEO.

Average income yield for the period was 8.8% for Element Finance, 6.4%
for Element Capital and 6.7% for Element Fleet with the portfolio as a
whole delivering average income yield of 7.5%. Delinquencies at the end
of the period were less than 0.2% of total finance receivables.

"We are extremely pleased with the overall returns and quality of our
portfolio which continues to perform above expectations," said Mr.
Hudson. "As the portfolio matures, I believe the disciplined approach
we've taken to underwriting will continue to contribute to the
portfolio's low delinquencies and strong yields," he added.

Operating expenses as a percentage of average portfolio assets decreased
from 3.62% during the previous quarter, to 3.36% for the three month
period ended September 30, 2012. Element's financial leverage ratio
increased during the period from 2.0:1 at the end of the previous
quarter to 2.28:1 at the end of the third quarter.

"What has yet to be reflected in these results is the added potential to
generate high quality assets from Element's increased focus on
developing comprehensive vendor finance programs for major North
American equipment manufacturers," said Mr. Hudson. "As we continue to
scale the business, we expect earnings growth to be supplemented as
additional leverage is applied to our balance sheet and SG&A is spread
over a broader base of net finance income," he added.

Financial Results Three-Month Period Ended September 30, 2012

Basis of presentation

The unaudited condensed consolidated financial statements for the
three-month period ended September 30, 2012 have been prepared on the
historical cost method in accordance with International Financial
Reporting Standards ("IFRS") and are reported in Canadian dollars.

The selected financial information included in this press release is
summary only and should be read in conjunction with the Company's
unaudited condensed consolidated financial statements as at and for the
three-month and nine-month periods ended September 30, 2012 and the
audited consolidated financial statements as at and for the nine-month
period ended December 31, 2011, and the notes thereto, and accompanying
management discussion and analysis of such results that have been filed
on SEDAR at www.sedar.com.

Highlights:

New originations reached an all-time high of $219.7 million during the
three-month period ended September 30, 2012, versus new origination of
$34.3 million for the same period of 2011. New originations on a
year-to-date basis were $455.7 million, an increase of $378.8 million
or 492% compared to new originations of $76.9 million for the
comparative period of 2011.

Total revenue was $19.6 million for the three-month period ended
September 30, 2012 versus $3.7 million for the same period last year.
Total revenue was $34.3 million for the nine-month period ended
September 30, 2012 versus $5.6 million for the same period last year.

Operating income before non-cash share-based compensation expense and
business acquisition costs, was $5.4 million for the three-month period
ended September 30, 2012 or $0.05 per share on an after tax basis,
compared to $0.3 million or $0.01 per share for the same period last
year. Operating income before non-cash share-based compensation expense
and business acquisition costs was $8.2 million for the nine-month
period ended September 30, 2012 or $0.08 per share, compared to a loss
of $$1.0 million or $0.05 per share for the same period last year.

Net income for the three-month period ended September 30, 2012 was $3.0
million compared to a net loss of $1.9 million for the same period last
year. Net loss for the nine-month period ended September 30, 2012 was
$3.0 million again after deducting gross business acquisition costs of
$9.4 million compared to a net loss of $3.8 million for the same period
last year which included business acquisition costs of $3.0 million

Selected Financial Information and Financial Ratios

The following table summarizes key financial data to be read in
conjunction with the consolidated financial statements of the Company
as at and for the nine-month period ended September 30, 2012. Such
financial statements are prepared in accordance with IFRS and are
reported in Canadian dollars.

(in $000's for stated values, except ratios and per share amounts)

As at and forthe three-month periodended September 30,2012

As at and for
the three-
month period
ended
September 30,
2011

As at and forthe nine- month periodendedSeptember 30,2012

As at and for
the nine-month
period ended
September 30,
2011

$

$

$

$

Total revenue

19,635

3,720

34,260

5,641

Operating income before share-based compensation and business acquisition costs

5,374

332

8,214

(1,073)

Earnings per share on after tax operating income before share-based compensation and business acquisition costs

$0.05

$0.01

$0.08

($0.05)

Income / (loss) before taxes

4,349

(2,986)

(3,353)

(4,871)

Net income / (loss)

3,012

(1,904)

(3,044)

(3,789)

Total assets

1,109,653

268,051

1,109,653

268,051

Finance receivables, net

927,298

225,665

927,298

225,665

Loan originations
New Originations

219,690

34,281

455,702

76,948

Business Acquisition

-

-

457,085

158,474

219,690

34,281

912,787

235,422

Total Shareholders' Equity

316,187

79,774

316,187

79,774

Average outstanding finance receivable

847,130

170,149

487,173

82,665

Average outstanding debt

651,717

130,792

337,123

64,571

Number of shares outstanding

83,014,978

24,286,517

83,014,978

24,286,517

Average number of shares outstanding

83,000,692

24,286,517

73,779,291

16,105,187

Average total shareholders' equity

314,222

136,490

272,583

70,006

Net income / (loss) per share (basic and diluted)

$0.04

($0.09)

($0.04)

($0.24)

Results of Operations - Three Months Ended September 30, 2012

The following table sets forth a summary of the Company's unaudited
results of operations for the three-month period ended September 30,
2012 and 2011:

(in 000's for stated values, except per share amounts)

Three-month
period ended
September 30,
2012

Three-month
period ended
September 30,
2011

$

$

Financial revenue

18,124

3,404

Financial expenses

5,635

1,161

Net financial income

12,489

2,243

Operating expenses

7,115

1,911

Operating income

5,374

332

Share-based compensation

695

304

Operating income before business acquisition costs

4,679

28

Business acquisition costs

330

3,014

Net income / (loss) before taxes

4,349

(2,986)

Deferred income taxes

1,337

(1,082)

Net income / (loss) for the period

3,012

(1,904)

Basic and diluted income / (loss) per share

$0.04

($0.09)

The Company continued to execute on its growth plan and strategy during
the quarter ended September 30, 2012 and is reporting improved
performances from operations over the quarter ended September 30, 2011.

Financial revenue grew to $18.1 million during this third quarter of
2012 compared to $3.4 million during the same quarter of 2011 compared
to $7.3 million during the immediate quarter ended June 30, 2012. This
growth reflects the continued strong growth in originations which
reached $219.7 million during the current quarter which was achieved
despite the results of TLS reflecting the seasonally slowest period for
the industry. This performance also demonstrates the strength of TLS,
and we expect this momentum to continue going forward.

Operating income was $5.4 million for the three-month period ended
September 30, 2012 compared to $0.3 million for the same quarter of
2011.

Net income before income taxes for the quarter ended September 30, 2012
was $4.3 million compared to a loss of $3.0 million reported for the
same period of the previous year. The loss in the quarter ended
September 30, 2011 was negatively impacted by the one-time transaction
cost associated with the purchase of the Alter Moneta portfolio which
was expensed during the period under IFRS but would have been
capitalized as part of the acquisition under Canadian GAAP.

Finance receivables have increased to $927.3 million at September 30,
2012 compared to $231.5 at December 31, 2011 an increase of 300%
resulting from a combination of (i) the acquisition of TLS on June 29,
2012, (ii) the entry into the large ticket business with the deployment
of Element Capital in January 2012 and, (iii) the continued organic
growth in originations which has reached a total of $455.7 million
during the nine-month period ended September 30, 2012 compared to $76.9
million during the comparative nine-month period of the previous year.
As a result, financial revenue was $18.1 million during the third
quarter of 2012, an increase of $14.7 million over the amount of $3.4
million reported for the third quarter of 2011. This increase is due to
the increase in average finance receivables outstanding during the
period as discussed above which grew from $170.1 million during the
quarter ended September 30, 2011 to $847.1 million during the quarter
ended September 30, 2012.

Financial expenses were $5.6 million for the third quarter of 2012
compared to $1.2 million for the third quarter of 2011, an increase of
$4.4 million reflecting the increase in average outstanding debt
between the periods which increased to $651.7 million during the
quarter ended September 30, 2012 compared to $130.8 million for the
same quarter of 2011. Financial expenses as a percent of financial
revenue decreased to 31.1% during the third quarter of 2012 from the
34.1% reported for the same comparative quarter. This decrease reflects
the lower debt cost of 3.46% during the third quarter of 2012 compared
to a debt cost of 3.55% for the comparative quarter of 2011.

Additional financial revenues of $2.2 million increased the overall
portfolio yield to 8.56% for the three-month period ended September 30,
2012 compared to 8.00% for the quarter ended September 30, 2011
resulting mainly from the addition of fleet management services from
the TLS acquisition concluded on June 29, 2012.

The combination of increased gross yield and the improvement in the debt
costs for the quarter ended September 30, 2012 resulted in an
improvement of 64 basis points in the net financial income for the
current quarter over the same quarter of the previous year.

Operating expenses were $7.1 million for the third quarter of 2012
compared to $1.9 million for the third quarter of 2011 reflecting the
increased level of activities required to manage a portfolio that
approaches $1.0 billion at September 30, 2012 resulting from the
acquisition of TLS on June 29, 2012. However, margins continue to trend
down and operating expenses as a percent of average finance receivable
was 3.36% during the current quarter ended September 30, 2012 compared
to 4.49% for the same quarter of the previous year.

Operating income before share-based compensation and business
acquisition costs was $5.4 million during this third quarter compared
to $0.3 million for the comparative quarter of 2011. Management
believes that this metric is the true measure of the Company's
performance as it excludes non-cash items that have not and will never
require cash settlement and it excludes business acquisition costs that
used to be capitalized as part of acquisition costs in the past under
Canadian GAAP but that are now required to be expensed under IFRS. This
translates to a yield to average outstanding finance receivables of
2.54% during the current quarter compared to a yield of 0.78% for the
comparative quarter of 2011 reflecting the substantial improvement of
the Company's performance over the last twelve months.

Shared-based compensation, which is a non-cash item reflecting the fair
value of options granted, was $0.7 million during the quarter ended
September 30, 2012 compared to $0.3 million during the same quarter of
2011. The increase is reflective of the increase in the level of
options granted during the intervening periods.

Business acquisition costs, which consist of the amortization of certain
intangibles acquired through those business acquisitions, integration
costs and transaction costs associated with the TLS acquisition were
$0.3 million during the current quarter of 2012. These costs would have
been capitalized as part of the acquisition under Canadian GAAP but are
required to be expensed under IFRS. As we have noted previously, these
expenses will continue to negatively impact the Company's performance
going forward as it continues on its growth plan and where such costs
will continue to be expensed as incurred under IFRS.

Consolidated Interim Statements of Financial Position[Unaudited, in thousands of Canadian dollars]

The following table sets forth the Company's consolidated financial
position of the Company as at September 30, 2012 and December 31, 2011:

This release includes forward-looking statements regarding Element and
its business. Such statements are based on the current expectations and
views of future events of Element's management. In some cases the
forward-looking statements can be identified by words or phrases such
as "may", "will", "expect", "plan", "anticipate", "intend",
"potential", "estimate", "believe" or the negative of these terms, or
other similar expressions intended to identify forward-looking
statements. The forward-looking events and circumstances discussed in
this release may not occur and could differ materially as a result of
known and unknown risk factors and uncertainties affecting the company.
No forward-looking statement can be guaranteed. Forward-looking
statements and information by their nature are based on assumptions and
involve known and unknown risks, uncertainties and other factors which
may cause our actual results, performance or achievements, or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statement or information. Accordingly, readers should
not place undue reliance on any forward-looking statements or
information. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they are
made and Element undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information,
future events, or otherwise.

Thanks to the plethora of communication and messaging apps available to the average user, unified communications (UC) is becoming more important than ever before. UC is a set of products and services designed to give employees a uniform communications experience, integrating different ...

Cloud providers like AWS have proven to be a viable option for running mainframe application workloads. The most effective method to exploit the value of Unisys mainframe applications and data is a transformative migration to modern systems frameworks in AWS, reusing as much of the ori...

Having a well-rounded brand strategy helps you identify the marketing channels you must focus on, and defines every aspect of how your business is viewed by your customers.
Marketing and advertising is an integral component of every business. The US Small Business Administration reco...

When you work with React app, it normally needs some data from the server to store it for immediate use (e.g., show it on the page). If the app works with some complex relational database the work than may be a bit challenging. In this article I am going to describe the issues with org...

Technology integration is complex and an evergreen business challenge for IT teams. Enterprises setup manual & point to point connections to exchange data from business partners. However, data disruptions emerge when the business IT systems expand and prevents organizations from sharin...